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Lennar to buy CalAtlantic Group in about $9.3 billion deal

Lennar said on Monday it would buy smaller rival CalAtlantic in a stock-and-cash deal valued at about $9.3 billion, including debt, to create the largest homebuilder in the United States.

CalAtlantic's shares were up 8.8 percent at $44 in premarket trading, while Lennar's shares were untraded.

The implied value of the deal is $51.34 per share, representing a premium of 27 percent to CalAtlantic's Friday close.

The equity value of the deal, which is expected to close in the first quarter of 2018, is $5.66 billion, based on CalAtlantic's 110.2 million outstanding shares as of July 26, according to Thomson Reuters data.

The $9.3 billion deal includes net debt of $3.6 billion.

The combined entity would have a market cap of about $18 billion, based on current prices, and control 1,300 active communities in 49 markets, Lennar said.

On a pro forma basis, CalAtlantic stockholders are expected to own about 26 percent of the combined company.